Review of the UK Jobs Market – October

Review of the UK Jobs Market – October

Welcome to our Review of the UK Jobs Market for October. Each month, we share market insight on the state of the UK jobs market.

You can either read our short blog, or see our infographic.

The main findings were:

  • Steepest decline in permanent staff placements since March
  • Weakest rise in permanent starting pay since early 2021
  • Vacancy numbers fall again in October

______________________________________

Staff Appointments

Accelerated decline in permanent placements

October revealed a twenty-fifth successive monthly decline in permanent placements. The latest fall was the sharpest since March. Recruitment freezes amid a lack of business confidence contributed to this. Some also attributed the uncertainty created by the late October government Budget. The decline was broad-based across England.

Steepest fall in temp billings for seven months

A fourth successive monthly decline in temp billings was recorded during October, with the rate of contraction accelerating to the steepest since March. A lack of demand for candidates amid evidence of some firms struggling to replace expiring business contracts. Uncertainty related to the October government Budget was again also noted.

______________________________________

Vacancies

Vacancy numbers down at an accelerated rate

Permanent vacancies declined in October at the steepest pace since the start of 2021. latest data marked the fourteenth successive month in which a reduction in perm vacancies has been registered. For temp vacancies, a third successive monthly fall was registered – with the contraction the sharpest in over four years.

Declining for the twenty-seventh successive period, the number of vacancies in the UK maintained a downward trend in the three months to September. Overall, vacancies were down 34,000 compared to the three months to June and therefore taking the overall total to 841,000. That’s the lowest level since the three months to May 2021.

______________________________________

Staff Availability

Steeper rise in staff availability

Permanent staff availability rose again in October, extending the current period of growth to 20 months. Moreover, the pace of expansion was historically steep and faster than in September. Redundancies and a lack of demand were widely reported to have led to growth in jobseekers.

In line with the trend since March 2023, temp availability increased in October. The pace of expansion was also the steepest registered since December 2020. Redundancies and a lack of vacancies underpinned the latest rise in availability.

______________________________________

Pay Pressures

Weakest rise in perm salaries since early 2021

Permanent starting salaries increased again during October, but the rate of inflation maintained its recent downturn, falling for a fourth successive month to its lowest since February 2021. Where pay increased, this was linked to competition for high quality candidates in key roles.

Modest growth in temp pay rates during October

Latest data showed a return to rising temp pay rates following little change in September. Although modest, the increase in temp pay was the best since June. Higher level candidates continued to attract and demand higher pay rates.

______________________________________

Source: KPMG and REC UK Report on Jobs 8th November 2024

october jobs review

Information, Intelligence, Trends 08 November 2024 Written by Marketing